2. In continuation to the above, it has now been decided to introduce a new scheme for depositing SBNs with designated currency chest at the district level, under guarantee agreement similar to the current facility available at RBI offices.

The scheme will be operational at Districts Head Quarters where secured storage facility will be made available for storing of SBNs. A currency chest operating at the place to be called Designated Chest (DC) will be required to operate a separate vault to be called Chest Guarantee Vault (CGV) as an extended arm of it. Banks, preferably those not having any currency chest will deposit SBNs into it on said to contain basis in sealed boxes and will get the value of the notes to the credit of their current a/c with the chest branch. The facility will also be available to Post Offices, if they are maintaining current account with the chest branch managing CGV.

DC will execute a guarantee bond on stamp paper with RBI as per the format in Annex I. Banks/ Post offices willing to avail the facility from DC will have to execute a guarantee bond as per format in Annex II with them. The amount of non-judicial stamp to be affixed will depend on the Stamp Act of the State concerned.

The designated currency chest will be in charge of the CGV and a separate set of joint custodians will be in charge of it.

For each district, one officer from RBI, will be the Nodal officer (NO) who will supervise the overall operations.

Concerned Regional Offices of RBI will identify DC for each district.

2. Authorisation

The banks have to authorise an official / officials, for making such deposits, through a mandate.

The signature of officials so authorised should be verified / confirmed by the DC from the officials of the same bank / post office whose signature/s is / are registered with DC. Only such authorised officials will be permitted to deposits SBNs into CGV.

3. Periodicity of CGSS

On being operational, banks will approach DC with details of SBNs to be deposited. Thereafter, DC should schedule receipt of SBNs in consultation with the tendering banks / Post offices.

The entire scheme for accepting SBNs, under this scheme, will be operation for 7 working days from the date it commences in a district.

4. Receipt of SBNs under CGSS

SBNs should be tendered in bundles of 10 packets each of 100 pieces with details of total number of SBNs in each box in triplicate as per Annex III. Separate boxes should be used SBNs in the denominations of ₹ 500 and ₹ 1000.

The boxes should be delivered by the banks with double lock and proper seal along with duly filled form.

The boxes with SBNs will be received from the tendering banks / post office on said to contain basis after prima facie checking. Thereafter, the boxes should be locked and sealed by the tendering bank in the presence of joint custodians of the bank (DC) concerned. The keys will be kept with the tendering bank/post office. There will be no Preliminary Verification and / or checking of bundles and packets.

On receipt of locked and sealed boxes and subject to the satisfaction of the joint custodians the tender should be accepted and acknowledgement on the copy of Annex III will be given. The other two copies of Annex III will be in the respective custody of the DC and RBI Nodal Officer.

5. Storage

Boxes containing should be kept in the strong room in a segregated manner, tender wise and bank wise.

On completion of each day’s work, the CGV will be put under lock and seal by the joint custodians as well as the RBI Nodal officers. On completion of the 7th day of the accepting SBNs deposits the CGV should be locked and sealed by all the three officials and thereafter, RBI Nodal Officer will return to his/her headquarters.

6. Accounting

On receipt of SBN, current account of the tendering banks / Post office should be credited by the DC and these balances will be shown as chest balances under soiled note category.

An entry in the chest book should be made every day with date and time stamp for the consolidated amount of the day’s receipts.

7. Reporting

Appropriate reporting should be done by the DC, through ICCOMS – CCRS. Similar reporting should also be done while sending SBNs to RBI.

During the seven days, when SBN deposits will be accepted, the DC should send a daily report in the enclosed format Annex IV by mail.

A consolidated report in Annex V should also be sent by mail at the end of the 7th day.

8. Security

Arrangement to be made for round the clock guarding of CGV by the police.

If the CGV has CCTV coverage the same should be activated.

9. Evacuation and Processing

RO of RBI will arrange to evacuate SBNs from CGV on priority basis.

Thereafter, SBNs will be subjected to detailed examination in Curenncy Verification and Processing Systems (CVPS).

Detection of deficiencies viz. shortage, counterfeit notes, mutilated note, etc. during processing at RBI will be recovered from DC who in turn will recover the same from the tendering bank / post office.

10. Inspection

CGV should be subjected to inspection by controlling authority and Nodal officer of RBI, every fortnight.

State Police will also be requested to subject CGV premises to periodical checking.

11. Expenses

If necessary, expenses relating to round the clock guarding will be borne by RBI.